Leading affordable and workforce housing stakeholder Standard Communities has formed a joint venture with developer Faring to create more than $2 billion of “missing-middle” housing throughout California over the next 18 to 24 months. The joint venture, Standard-Faring Essential Housing, will focus on the new construction of middle-income housing as well as the acquisition and conversion of existing market-rate developments.
Standard-Faring Essential Housing is utilizing California’s public-private partnership structure that was designed to create housing for households with incomes between 80% and 120% of the area median income (AMI). Traditionally, state-administered affordable housing programs have focused on assisting households earning no more than 80% of the AMI, leaving a gap for those who earn too much to qualify for affordable housing but can’t afford market-rate rents.
“By focusing on middle-income housing, California cities can ensure that middle-income families and essential workers, such as first responders, hospital and health care staff, and teachers, can afford to live near their jobs in the communities they serve,” said Jeffrey Jaeger, principal and co-founder of Standard Communities.
The joint venture recently created over 650 dedicated units of middle-income housing in Southern California with a total capitalization of over $400 million. These three transactions have utilized tax-exempt bond financing provided by CSCDA Community Improvement Authority. Upon taking ownership, CSCDA Community Improvement Authority worked with Standard-Faring Essential Housing as the project administrator to immediately lower rents for new residents who qualify with incomes between 80% and 120% of the AMI.
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